Brand Management 1

Why Build Brands?
Copyright 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
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Buildings age & become dilapidated. Machines wear out. Cars rust. But what lives on are Brands
Sir Hector Laing
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Brand value is the extra worth engendered in customers, whose loyalty is made more secure.
The Economist (Dec.,1988)
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Their continuous usage goes beyond rational features.
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What you show is more important than what you say. One Brand. One Voice
David Ogilvy
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What Is a Brand?
A service
A packaging
A product
A logo
A country
A shop A person
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Brand = Product + Images
More than just the product or the service Add the intangible images that come to mind Add the usage occasions that come to mind Add the user imagery that comes to mind
Brand = Values + Added values

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A brand is a promise
a sellers promise to deliver consistently a specific set of features, benefits and services to buyers. A short-hand that communicates powerfully and reduces uncertainty Differentiates goods or services from competing offerings
Promise
If the promise is strong enough, the brand speaks for itself
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Marketing Advantages of Strong Brands

(Kotler & Keller, Ch. 9)
Improved perceptions of product performance Greater loyalty Less vulnerable to competition Less vulnerable to crises Larger margins Inelastic consumer response to price increases
Elastic consumer response to price decreases Greater trade cooperation Increase in effectiveness of IMC Licensing opportunities Brand extension opportunities
12-12
Brand Management
Advantages of Branding (see also Fig.7-1, p. 286)
Consumers viewpoint 1. Product quality 2. Increased shopper efficiency 3. Calls attention to new products 4. Reduces psychological risk Sellers viewpoint 1. Handling orders, tracking down problems 2. Trademark legal protection 3. Brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing
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Managing Brands for Competitive Advantage

Branding is the process of creating that identity. Buyers respond to branding by making repeat purchases because they identify the item with the name of its producer. Brand: name, term, sign, symbol, design, or some combination that identifies the products of a firm while differentiating them from the competitions
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Brand Loyalty Brand recognition: Consumer awareness and identification of a brand.

Brand preference: Consumer reliance on previous experiences with a product to choose that product again. Brand insistence: Consumer refusals of alternatives and extensive search for desired merchandise.
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Brand Names
Brand attributes
Short: Kodak, Fuji

Morgan Stanley Dean Witter Discover CNN an AOL Time Warner Company
Name
Pronounceable: LOiseau Lyre
Logo
Colors
Essence Statement
12-16
Brand Names continued
Brand attributes
Product (not firm) brands should be

suggestive of product benefits:
Name
Explorer, Cover Girl
Logo
Toyota Siena, H-P Pavilion Flying Pigeon bicycles
Ps: Public Storage example
Colors
Essence Statement
Distinctive: Lexus/Lexis
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Brand Names still continued

Translatable: AOL in Germany Golf, Jetta, Scirocco? Not mean anything rude or silly in another language
Brand attributes
Name
Logo
Colors
Essence Statement
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Brand Names continued further
Brand attributes
Name
Logo
Changing your name will not overcome a bad strategy Consignia (Royal Mail) Monday (PricewaterhouseCoopers Consulting)
Colors
Essence Statement
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Worst Product Brand Name
Oil of Olay Oil Free Moisturizing Cream
This product has been discontinued. Using the latest advancements in skin care, Olay has replaced Oil Free Active Hydrating Cream with new Olay Sensitive Moisture Therapy Cream.
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Sound or jingle
Brand attributes
Examples: Intel da-da-da-ding Windows sound

Name
Logo
Colors
Sound (jingle)
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Brand Logo & Colors
Brand attributes
Name
Logo
Colors
The keys are:

Essence Statement
Consistency Creativity
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Brand Essence Statement
Brand attributes
Name
Logo
Colors
Essence Statement
It should leverage a compelling truth (Jeff Manning)

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Criteria for choosing Brand elements

Memorability Meaningfulness Likeability Transferability Adaptability Protectability
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Types of Brands
Generic product: item characterized by plain label, with no advertising and no brand name Manufacturers brand or National Brand: brand name owned by a manufacturer or other producer Private brands: brand name placed on products marketed by wholesalers and retailers
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Captive brands: national brands that are sold exclusively by a retail chain Family brand: brand name that identifies several related products Individual brand: unique brand name that identifies a specific offering within a firms product line and that is not grouped under a family brand
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Brand equity: added value that a respected, well-known brand name gives to a product in the marketplace. Brand equity increases the likelihood that consumers will recognize the firms product when they make purchase decisions A strong brand equity can contribute to buyers perceptions of product quality Branding can also reinforce customer loyalty and repeat purchases
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The Role of Category and Brand Managers Brand manager: Marketing professional charged with planning and implementing marketing strategies and tactics for a brand
Category management: Product management system in which a category managerwith profit and loss responsibilityoversees a product line.
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The Consumers Brand Knowledge

Brand Exploratory
Brand Recognition Non-product related
Price
Package User Situation Uses Situation
Brand Awareness
Product related Brand Recall Attribute Functional Types of Brand Associations Strength of Brand Associations Favorability of Brand Associations Uniqueness of Brand Associations Benefit Attitude
Brand Knowledge
Experience baseed
Symbolic
Brand Image
By Kevin Lane Keller
12-29
Understanding Brands : Aakers Model

Extended Core Brand Essence
Brand as Product Brand as Organization Brand as Person Brand as Symbol Value Proposition (Emotional/Rational/Self-expressive) Credibility (Support / Proof / Story )
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Brands are part of a strategy aimed at differentiating supply. Companies do so by consistently and repeatedly providing an ideal combination of attributes -- both tangible and intangible, practical and symbolic, visible and invisible. Strategic Brand Management : New Approaches to Creating & Evaluating Brand Equity Jean Noel Kapferer
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The Kapferer Brand Identity Prism

PICTURE OF SENDER
Physique
Personality
EXTERNALISATION Relationship
INTERNALISATION Culture
Reflection
Self-Image
PICTURE OF RECIPIENT
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Brand: Amul Draw Aakers model Draw Kapferers prism
12-33
AMUL : Aakers Model

Extended Core
Pride Value Available
Brand Essence:
Taste
Milk
Quality Variety Food
Indian
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AMUL : Kapferers Prism

Physique : Taste, Quality
Personality : Simple, Indian
Relationship : Sociable
AMUL
Culture : Co-operative, Sharing
Reflection : Value Oriented
Self-Image : Proud Indian, Fun loving
12-35
Brand-building: The Steps

Determine the current image with consumers
Define the desired image

Identify focus areas for action Product development/innovation Packaging/delivery systems Advertising/promotions Implement action plan with a monitoring programme
Feedback to action plan
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Brand Management
Adding An Item: Four Brand Types (Fig. 7-3, p. 292)

Product Category Existing Existing Brand Name New New
Line Brand Extension Extension Flanker Brand New Product

31
Dalrymple & Parsons/Marketing Management 7th edition: Chapter 7
12-37
Product Identification
Brand name: part of a brand consisting of words or letters that form a name that identifies and distinguishes a firms offering from those of its competitors Brand mark: symbol or pictorial design that identifies a product Generic name: branded name that has become a generically descriptive term for a class of products (e.g., nylon, aspirin, kerosene, and zipper)
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Trademark: legal protection which confers the exclusive right to user brand name, trade mark, and any slogan or product name abbreviation Trade Dress: visual cues used in branding to create an overall look The distinctive shape of Philips light bulbs and the McDonalds arches provide an example of trade dress
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Brand extension: application of a popular brand name to a new product in an unrelated product category Line extensions refers to new sizes, styles, or related products Brand licensing: practice allowing other companies to use a brand name in exchange for a payment
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Brand Management
Brand equity: The goodwill (equity) that an established brand has built up over its existence. DREK -- differentiation, relevance (strength) -- esteem, knowledge (stature) Brand concept: specific meaning that brand managers create and communicate to the target market. Brand concept management: the analysis, planning, implementation, and control of a brand concept throughout the life of the brand.
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Understanding Brand
Brand A promise to customers
Brand attributes
Brand Management
Brand "Architecture" (Aaker article)
Name
Co-brand
Firm
Product (Product line)
Logo
Stealth brand
House of Brands
Colors
Fighting brand
Endorsed Brands
Essence Statement
Sound
Multi-brand
Subbrands
Hidden brand
Branded House
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Managing Brand offer Architecture

Or How to signify at the same time : . a common reference of brand offerings and . how they differ from each other and . What the Brand stands for.
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Complex Brand Offer Architectures Product Brand : Exclusive name to a single

product to assure individual positionning (Tide, Martini ) product in segmented market or across similar markets (Renault .) product categories with same ability (Green Giant ..)
Jean-Noel Kapferer
Line Brand : Extend a concept across different Range Brand : Use same name and promise in
Umbrella Brand : Support products in different

markets with each its own promise, Danon
Source Brand : Support sub-brand names as above Endorsing Brand : Approve/garanty wide variety
of product brands, line and range brands GE
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Brand extension/stretching
Why extend ? What is Brand stretching ? Where to extend ? Risks Keys to success Fitting why NOT extend ?
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Why extend brands ?

increasing competition between less & larger players with global aspirations and ability to communicate globally towards saturation of markets similarity of brands offers attributes decreasing brand loyalty react to declining markets nourish the brand perceived vitality
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What is the brand stretching ?

It is the transfer of brand values on the new market It shows that the brand is not related directly to one sector but has values that can transcend different products categories
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Where Stretching the Brand

same category : no distance extension new sub-category : short distance extension new category : middle distance extension new activity : long distance extension Geographic expansion
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Dim Brand stretching
Comfort, liberty
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Low cost in launching Danone Activ and Talians
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Barilla move into biscuits
taste, savor, Italian way of cooking

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Swatch move into jewel
Modern, Quality/price, Variety, Innovative design

12-53
Caterpillar moved into shoes and clothing
reliable, resistant, masculine

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Taillefine move into biscuits and water
Non fat, healthy

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Mars move into ice cream
gourmandize, rich, sweet

12-56
Brand stretching risks

Distort/Dilute the values of the Brand
Lose the original consumers
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Pierre Cardin brand dilution
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Keys to success in brand extension
Brand identity
Fit
Relevance
Brand extension
Added value
Markets values
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Fitting
Perceived brand typicality, ie product categories which go well with the mother brand Emotional agreement with the potential extension product categories tested transferability of the brands intangibles and of the brands vision, brands identity & brand project.
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Economic evidences of brand extensions

Higher survival rate of products Higher chances of success, due to : . trial rate . conversion rate . loyalty rate (repurchase) Lower launch cost
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Why NOT extend brands ?

Unclear/no Brand Identity High brand switching pattern Unwatched Overheads Cost increase No sufficient resources for success No sufficient Fit and Relevance .
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Understanding Brand Management
Brand Management
Co-brand Stealth brand Fighting brand Multi-brand Hidden brand
Everything the firm does either adds or subtracts to the brand equity
Positive interactions reinforce the promise Negative experiences reduce the value of the brand
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Understanding Brand Management Conventional Brand Decisions
1. Line extension (e.g. Mercedes A Class) 2. Brand extension (using Mercedes on sunglasses) 3. Should we do private label goods?
Brand Management
Examples: Kelloggs Pop-tarts with Smuckers Jam The Eddie Bauer Ford Explorer Turns out to be very big on the Internet: NYTimes gives Amazon credibility, and Amazon makes NYT look modern.
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Brand Management
Who is the Lucky Dog Phone Company? Who owns 10-10-321?
Who owns Turning Leaf Vineyards?

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Brand Management
Fighting Brand is a pricing strategy as a competitive response: Example: Smirnov (market leader, owned by Heublein) Wolfschnidt -- $1 less Heublein raised the price of Smirnov Introduced Reiska = Wschmidt (the fighting brand) then added Popov lower than both
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Brand Management
Multi-brand strategy lets us sell to customers in any way they want to buy
Chrysler, Dodge Having several brands can be useful
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Understanding Brand Management Multi-brand Strategy
Example: Harman International (Car Stereos) owns the following brands:
Harman/Kardon Becker Infinity JBL Oxford
Carnival Cruise has 12 lines
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Carnival Cruise has 12 lines:
Carnival Cruise mid-price, mass market, fun Cunard Trans-Atlantic, old-world European Seabourne High-end, exclusive, exotic travel Windstar Youth and adventure Holland America Package tours
What are the pros & cons of the multi-brand strategy?
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Brand Management
It may make sense to hide our brand (the OEM game) Examples: Yahoo Travel is really Travelocity Follett runs university bookstores The visible brand gives a reason to buy, the hidden brand is the B2B reason to contract
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Hidden Brand Disambiguation
Brand Management
Private Label manufacturing is forced on the manufacturer when there is excess capacity in the industry In contrast, Hidden Brand is a strategy the producer chooses when it wants to reach new market segments
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Brand Management 1

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Brand Management 1

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Why Build Brands?

Their continuous usage goes beyond rational features.

Brand = Product + Images

Brand = Values + Added values

Marketing Advantages of Strong Brands

Managing Brands for Competitive Advantage

Brand Loyalty Brand recognition: Consumer awareness and identification of a brand.

Short: Kodak, Fuji

Pronounceable: LOiseau Lyre

Brand Names continued

Product (not firm) brands should be

Explorer, Cover Girl

Toyota Siena, H-P Pavilion Flying Pigeon bicycles

Ps: Public Storage example

Brand Names still continued

Brand Names continued further

Worst Product Brand Name

Oil of Olay Oil Free Moisturizing Cream

Examples: Intel da-da-da-ding Windows sound

Brand Logo & Colors

The keys are:

Brand Essence Statement

It should leverage a compelling truth (Jeff Manning)

Criteria for choosing Brand elements

The Consumers Brand Knowledge

By Kevin Lane Keller

Understanding Brands : Aakers Model

The Kapferer Brand Identity Prism

Brand: Amul Draw Aakers model Draw Kapferers prism

AMUL : Aakers Model

AMUL : Kapferers Prism

Personality : Simple, Indian

Culture : Co-operative, Sharing

Reflection : Value Oriented

Self-Image : Proud Indian, Fun loving

Brand-building: The Steps

Define the desired image

Adding An Item: Four Brand Types (Fig. 7-3, p. 292)

Line Brand Extension Extension Flanker Brand New Product

Dalrymple & Parsons/Marketing Management 7th edition: Chapter 7

Brand "Architecture" (Aaker article)

Product (Product line)

Managing Brand offer Architecture

Complex Brand Offer Architectures Product Brand : Exclusive name to a single

Umbrella Brand : Support products in different

Why extend brands ?

What is the brand stretching ?

Where Stretching the Brand

Dim Brand stretching

Low cost in launching Danone Activ and Talians

Barilla move into biscuits

taste, savor, Italian way of cooking

Swatch move into jewel

Modern, Quality/price, Variety, Innovative design

Caterpillar moved into shoes and clothing

reliable, resistant, masculine

Taillefine move into biscuits and water

Non fat, healthy

Mars move into ice cream

gourmandize, rich, sweet

Brand stretching risks

Lose the original consumers

Pierre Cardin brand dilution